In between handling a busy Christmas Eve our newsagencies have been preparing for our Boxing Day sales. We have two posters prepared – the one on the photo and another pitching details of our specials. We have purchased product (cards, calendars, journals and some gift lines) for this two-week event to supplement existing prduct we want to quit. Tonight, before we close, we will dress the stores ready for an easly start on Boxing Day.
The Puzzler Brain Trainer is a drain on newsagent cash. The new issue came out today and is to be returned week five next year – the same time as the issue this new issue replaced. We do not need two issues on the shelf at the same time. Most newsagents would not have the space. All this delayed return achieves is a delay in refunding newsagents for unsold stock. Grabbing cash from small business newsagents like this is unfair.
It is actions like this which make newsagents want to pull back on magazines. One day, magazine distributors will wonder what they did to cause newsagents to focus more attention on other product catgeories.
Christine Lovatt was sent this note from a reader who saw our ad promoting newsagencies in Cluewords recently:
On reading the back of the December issue (77) of my favourite crossword magazine, Cluewords, I must agree wholeheartedly with the sentiments expressed about the local newsagents right around Australia. Our newsagent in Springwood, NSW are David, Vicki and Chris and they are extremely helpful. They deliver my four crossword magazines, Mega, BIG, Colossus and Cluewords along with my Sydney Morning Herald. I am amazed that they will do that as it means remembering to roll the magazine with the paper and also remembering in which paper it has been rolled so I get the correct one thrown into my front yard.
This is great kudos for Springwood newsagency (NSW) and for newsagents generally. That a customer takes time to provide such positive feedback is wonderful.
Thanks to Lovatts for running the ad promoting newsagents for no cost in Cluewords.
I was surprised to receive a Christmas gift from Intralot yesterday. I thought it might have been sent to a few but it seems that many newsagents received the same gift.
It is rare that newsagents receive a Christmas gift like this from a supplier.
The folks at Intralot have been thoughtful as the gift contained a range of items to share with the team.
Jeff Jarvis has an interesting post at his Buzz Machine blog which says, in part, that the LA Times can cover its editorial staff costs from online revenue. This is a significant milestone and presents the publisher with options, as Jeff speculates – when to turn off the presses?
The question of shutting print and going with a pure online model is complex. That the LA Times has reached sufficient revenue to permit such a discussion is, of itself, ground breaking.
This is another reason our shopfits need to be flexible and why we need to be thinking about the kind of future we want for our businesses.
Sales for calendars, diaries, gifts and books are the stand out success in newsagencies I am connected with this Christmas. Each is showing excellent (double digit) year on year growth. At Forest Hill, this has been achieved without the real-estate and labour cost of an outpost which we had last year. Sometimes I think those of us in shopping centres think that an outpost is essential when smart retailing within the lease line can deliver a better bottom line result.
We are still not discounting – except for Advent Calendars. Boxing Day is when our SALE starts.
Worrells, the Administrator for OnQ, has recommended that the company be wound up. This was to be put to a vote of creditors today. OnQ is interesting to newsagents because of its shareholding in Bill Express and its connection with hardware supplied to newsagents as part of Bill Express through Technology Business International, another OnQ company. Click here for a copy of the report to creditors provided in advance of today’s meeting. It sheds some light on the Bill Express / OnQ mess.
The announcement by Borders in the US of an agreement with HarperStudio to buy books on a firm sale basis instead of the usual sale or return basis is a significant move in book retailing in the US.
If magazine publishers and distributors in Australia offered firm sale with better margin, some newsagents would embrace the opportunity. These newsagents would have more reason to sell product purchased on a firm sale basis.
At my newsagency software company, Tower Systems, we have contact with between 150 and 200 newsagents every day through our help desk. In the course of these calls about software or some other supplier issue, team members often find themselves talking about general industry issues.
It is interesting to me the number of shut-in newsagents we talk with. These are newsagents from smaller businesses who don’t have the staff or other resources to enable them to be out of the shop. Often they want to more actively participate in the industry but cannot free themselves from being behind the counter.
I have heard some suppliers and industry representatives say that these people are holding the industry back by not getting out of their businesses are participating. My view is that they are participating by running their businesses.
I would not criticise anyone for owning a business which is too small to justify hiring staff so the owner could have free time. All of us in our own businesses sacrifice our own time for the future of the business.
At Tower Systems this year we have run many online training sessions and workshops for newsagents. These have been a success with the shut-in newsagents and provided to them access to a community of newsagents which would have otherwise been missed.
I’d like to see other suppliers pursue online meetings and other models which build a better connection with shut-in newsagents. The result will be a better informed and motivated channel.
Further to recent discussion here on newspaper home delivery, click here for a copy of the business plan I developed three years ago when I was looking to expand in this area. As I was unable to interest anyone in this or acquire any adjoining runs I sold my home delivery business. Timing is everything as they say. I was lucky.
Most of the calendars we sell in our newsXpress Forest Hill store we selected by title, carefully based on past year sales data and with attention to our demographic. Like special interest magazines, our calendars speak to range. They pull customers in looking for special interest titles – because they have seen them before in our shop or because of word of mouth.
For most of our pre Christmas customers, calendar price is not an issue.
Several times, customers have told us that we have saved them buying a certain calendar title online – they love that they were able to buy it over the counter. These are customers who will be back next year. Some will also be back for the Boxing Day sale for a second and third calendar – we have stocked up for this.
The Ferrets calendar is a good example of demonstrating a point of difference. Ask a newsagent if they would carry it and most would say no. However, once you have had some success with calendars and you want to expand on that you will soon find yourself carrying and selling the Ferrets calendar.
Like overseas crossword titles, calendars from magazine companies are, for the most part, a waste of time and space. You can build the kind of business you want.
Crosswords are also selling well athis Christmas, especially the titles next to our women’s weeklies section in our magazine department. We have eight Lovatts titles and one Puuzzler title in this second location. I have noticed several customers buy multiple titles as a gift. By placing crosswords in this higher traffic area, with a poster promoting them as Christmas gifts, we get sales to people who may not do crosswords but will give them as a gift.
The Australian edition of Top Gear magazine has sold very well in the lead up to Christmas. I have had several customers tell me they are buying it as a Christmas gift. I’d like to think that our promotion of magazines as Christmas gifts with the posters I blogged about here has had something to do with this. I have no evidence other than good magazine sales. One customer commented that Top Gear was the perfect stocking stuffer for her husband – helpful to remind staff of this over the next few days.
Dylan Stableford at Folio magazine in the US has brought together 117 predictions for magazines next year. Some are thought provoking others are lazy. I am about to sign off on a new shop fit for our Frankston store. The plans include a good allocation of prime space for magazines – using UK designed and made fixturing.
While I am sure 2009 will present challenges for magazines, I expect that newsagents who embrace being a specialist will end the year with good results. Our new shop fit seeks to position us to improve retail efficiency with the category and offer flexibility to roll with challenges which present.
Vogue does not look like a premium title when the promotional material shoved into each copy is so easily damaged in transit. All of the cards promoting the bonus with the latest issue were damaged in our shipment. We are contemplating removing them because they mage the magazine look damaged. I appreciate that the publisher wants to promote the bonus – they need to do this in a way which respects their excellent brand.
I was fortunate to get to five shops I am connected with yesterday – three newsagencies and two card and gift shops. Cards are strong all over – now is where I would love a card full of backup stock. Calendars are doing very well. Nothing is discounted except for the remaining small range of Advent calendars. Magazines are strong in economically weaker areas.
What surprised me was the number of other stores discounting – 50% off Christmas cards, gifts and calendars. But they are not screaming discount. It is a more passive approach and in one case something you know hear about only when you are in the store.
In one centre Calendar Club is discounting calendars at 25% off and in another centre Calendar Club is selling the same calendars at full price.
We took up the newsXpress Christmas gift offer and have these personalized pads to give to regular customers. They promote our contact details and act as a nice Things To Do Today pad for placement next to the phone or elsewhere in the home or office.
Customers react well when you give them something for nothing like this. I’ll take any opportunity I can to promote my newsagency and the brand under which I operate because this is my point of difference.
Gifts such as these pads are common in other national retail chains.
The latest US media forecast from the respected Fitch Ratings says that some US cities could be without a daily print newspaper by 2010. The Fitch press release (free registrationr equired) has details.
Here we are, the big weekend before Christmas. If today and tomorrow are anything like the last two weeks we will see cracker sales. All stores in which I am directly involved and in a variety of demographics are trading well. The only items we are discounting are Advent Calendars. Year on year, where we have such data, we are in great shape. But all that can change at Christmas based on one or two days trade. Hence my interest in this weekend. Rain would be nice – people flock to shopping centres when it rains.
The photo below shows the Christmas product display customers walk past as they approach our lottery counter right at the front of our newsagency. As you will see from other posts today, this is one of several in-store offering Christmas products.
We are not as into gifts in this shop yet as other newsagencies so our Christmas pitch is more about the season and celebrating this than gifts in general.
After an amazing three week run we have replaced our counter Australian Women’s Weekly display with Christmas gifts – as shown in the photo. We have gone for easy to sell Christmas items here. The mugs are selling especially well from this position as are small Christmas decorations. It is great seeing people come to their counter with a newspaper, magazine or other items and then add a $9.95 mug to the basket.
AWW will sell out this month as a result of the display we left in place at the counter.
